Waterways Leisure Tourism, the recently listed entity that runs Cordelia Cruises, will seek shareholder approval for a 1:10 ratio, the company told stock exchanges on Friday.
The board cleared the stock split proposal.
Waterways Leisure stock split: What changes
Under the proposal, the company’s authorised share capital of Rs 100.05 crore will remain unchanged in value but will now be divided into 100.05 crore shares of Re 1 face value each, up from 10.05 crore shares of Rs 10 each. The issued, subscribed and paid-up capital of Rs 72.39 crore will similarly be split into 72.39 crore shares of Re 1 each, compared with about 7.24 crore shares of Rs 10 each currently.
Since the split is being carried out in a 1:10 ratio, the company said no shareholder will be left without an entitlement, and there will be no fractional shares to deal with.
The board also approved a consequent change to the capital clause of the company’s Memorandum of Association to reflect the new face value and share count.
Waterways Leisure: Stock split rationale
In its disclosure to the BSE and the National Stock Exchange, the company said the split was intended to make its shares more affordable and accessible to a broader set of investors and was expected to increase trading volumes. It added that the subdivision would not alter the company’s overall capital structure or intrinsic value.
Timeline
The company said the process is expected to be completed within approximately three months of receiving shareholder approval, subject to the necessary regulatory clearances.